SUN market is mixed, amid the Sukuk auction and ahead of the BI RDG. The yield on SUN Benchmark FR91 was relatively flat at 7.41%. Meanwhile, the pressure on the price of FR90, made the yield on the 5-year SUN Benchmark to touch the level of 7%.

Corporate Bonds
BSD Offers Bonds with Coupon up to 8.5%. PT Bumi Serpong Damai Tbk (BSDE) plans to issue debt securities with a total target of IDR 1 trillion. The issuance is divided into two, bonds amounting to Rp750 billion, and sukuk Ijarah amounting to Rp250 billion. This issue is a continuation of the series, Bumi Serpong Damai Sustainable Bonds III Phase II Year 2022. The bonds offered are series A with a 3-year tenor with a coupon of 7-7.50% per year, and a 5-year series B with a coupon offer of 7.75 -8.50% per year. The tenor and coupon for the Ijarah sukuk offered are series I Bumi Serpong Damai Phase II 2022. The tenor and yield offered are the same as bonds. (CNBC Indonesia)

Domestic Issue
The Government Carry IDR 1.8 Trillion from Sukuk Auction. The government auctioned 6 series of State Sharia Securities or state sukuk on Tuesday. From the auction, the government carried IDR 1.8 trillion. This amount is smaller than the indicative target of the state sukuk auction set by the government, IDR 5 trillion. Furthermore, the total incoming bids for the six sukuk series reached IDR 6.4 trillion. The highest offer came from the PBS029 sukuk series, which reached IDR 2.3 trillion. (Kompas)

Investor are wait and see, ahead of the results of the BI RDG on Thursday tomorrow. Market consensus projects that the BI 7DRR for the October period will rise between 25Bps-50Bps, and speculation has even suggested it could rise to 75Bps, as the rupiah exchange rate approached the level of IDR15,500/USD earlier this week.

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